Anyone who thought state budget deficits were confined to one or two regions of the United States had a sobering wake-up call in the form of a report issued this month by the Center on Budget and Policy. The report indicates that the sea of red ink has now washed over no less than 44 […]

BF Staffhttps://businessfacilities.com/2011/01/rising-tide-of-red-ink/Anyone who thought state budget deficits were confined to one or two regions of the United States had a sobering wake-up call in the form of a report issued this month by the Center on Budget and Policy. The report indicates that the sea of red ink has now washed over no less than 44 […]3:44 pm

Rising tide of red ink

Anyone who thought state budget deficits were confined to one or two regions of the United States had a sobering wake-up call in the form of a report issued this month by the Center on Budget and Policy. The report indicates that the sea of red ink has now washed over no less than 44 states.

Nevada, Illinois, New Jersey, Texas and California lead the list of states in arrears, each compiling current deficits that amount to roughly one-third of their budgets. Nevada currently is facing a $1.5-billion deficit that is equivalent to 45.2 percent of the state budget; Illinois’s deficit is about $15 billion, or 44.9 percent of its budget; New Jersey weighs in at $10.5 billion, or 37.4 percent of its budget; Texas is facing a $13.4 billion gap, 31.5 of its budget total; and California, despite draconian budget cuts in the past two years, still has a $25.4-billion gap to close.

States that are closest to making ends, according to the center’s report, are Indiana, West Virginia, Montana, Iowa, and Massachusetts, which range from the Hoosier State’s 2 percent shortfall (approximately $270 million) to Massachusetts’ $1.8-billion deficit (5.7 percent of budget).

Proposed remedies include a bill reportedly circulating in Congress that will enable states to file for bankruptcy so they can renegotiate obligations like pension payments.

However, a less-painful cure can be found in the 2010 census results: the Census Bureau reports that the fastest growth was achieved by states without a state income tax.

Suggested Links:

You Might Like:

California Keeps Crown As King Of Solar PowerCalifornia retains its crown as the nation's king of solar power: The Golden State was the top-ranked state in all three solar power categories in Business Facilities' 13th Annual Rankings Report.

Stay connected

The Hoosier Energy Power Network’s Economic Development team is dedicated to providing valuable site selection information and assistance to companies considering a relocation or expansion in Indiana or Illinois.

The Building Energy Quotient Portal provides a faster, more automated approach to receive a Building EQ Performance Score. - Read: ASHRAE Launches New Building Energy Quotient Portal at FacilityExecutive.com.

Observations and lessons learned are shared by a female, millennial engineer who's worked in three industries, most recently building consulting. - Read: Engineering The Workplace Culture For Employees at FacilityExecutive.com.

Square and round wet–rated Mini LED Panel Lights offer upgraded color characteristics, energy savings, and a very long service life with minimal maintenance. - Read: EarthTronics Mini LED Panel Lights at FacilityExecutive.com.

E-News Signup

Join 20,000+ Subscribers & Get the latest from Business Facilities!

Business Facilities highlights area economic development and site selection news from around the world. Economic development creates opportunities to grow state, local and metro areas, which are essential for economic growth, improved quality of life and community development.

Business Facilities is a leading full-service media brand specializing in the site selection marketplace. Through a bi-monthly magazine, e-mail newsletters, a news portal, and its LiveXchange event, Business Facilities has created a dynamic community for C-level executives and economic development organizations.